What is USAID? Why President Donald Trump and Elon Musk want to end it?

The US Agency for International Development, known as USAID, was established during the Cold War in 1961. (AFP)
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Updated 03 February 2025
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What is USAID? Why President Donald Trump and Elon Musk want to end it?

  • Since its establishment in 1961, Republicans and Democrats have fought over the USAID and its funding.
  • Its first mission was to counter Soviet influence abroad through foreign assistance

WASHINGTON: Dozens of senior officials put on leave. Thousands of contractors laid off. A freeze put on billions of dollars in humanitarian assistance to other countries.
Over the last two weeks, President Donald Trump’s administration has made significant changes to the US agency charged with delivering humanitarian assistance overseas that has left aid organizations agonizing over whether they can continue with programs such as nutritional assistance for malnourished infants and children.
Then-President John F. Kennedy established the US Agency for International Development, known as USAID, during the Cold War. In the decades since, Republicans and Democrats have fought over the agency and its funding.
Here’s a look at USAID, its history and the changes made since Trump took office.
What is USAID?
Kennedy created USAID at the height of the United States’ Cold War struggle with the Soviet Union. He wanted a more efficient way to counter Soviet influence abroad through foreign assistance and saw the State Department as frustratingly bureaucratic at doing that.
Congress passed the Foreign Assistance Act and Kennedy set up USAID as an independent agency in 1961.
USAID has outlived the Soviet Union, which fell in 1991. Today, supporters of USAID argue that US assistance in countries counters Russian and Chinese influence. China has its own “belt and road” foreign aid program worldwide operating in many countries that the US also wants as partners.
Critics say the programs are wasteful and promote a liberal agenda.
What’s going on with USAID?
On his first day in office Jan. 20, Trump implemented a 90-day freeze on foreign assistance. Four days later, Peter Marocco — a returning political appointee from Trump’s first term — drafted a tougher than expected interpretation of that order, a move that shut down thousands of programs around the world and forced furloughs and layoffs.
Secretary of State Marco Rubio has since moved to keep more kinds of strictly life-saving emergency programs going during the freeze. But confusion over what programs are exempted from the Trump administration’s stop-work orders — and fear of losing US aid permanently — is still freezing aid and development work globally.
Dozens of senior officials have been put on leave, thousands of contractors laid off, and employees were told Monday not to enter its Washington headquarters. And USAID’s website and its account on the X platform have been taken down.
It’s part of a Trump administration crackdown hitting the federal government and its programs. But USAID and foreign aid are among those hit the hardest.
Rubio said the administration’s aim was a program-by-program review of which projects make “America safer, stronger or more prosperous.”
The decision to shut down US-funded programs during the 90-day review meant the US was “getting a lot more cooperation” from recipients of humanitarian, development and security assistance, Rubio said.




US billionaire Elon Musk arrives for the inauguration ceremony before Donald Trump is sworn in as the 47th US President, Jan. 20 (AFP)

What do critics of USAID say?
Republicans typically push to give the State Department — which provides overall foreign policy guidance to USAID — more control of its policy and funds. Democrats typically promote USAID autonomy and authority.
Funding for United Nations agencies, including peacekeeping, human rights and refugee agencies, have been traditional targets for Republican administrations to cut. The first Trump administration moved to reduce foreign aid spending, suspending payments to various UN agencies, including the UN Population Fund and funding to the Palestinian Authority.
In Trump’s first term, the US withdrew from the UN Human Rights Council and its financial obligations to that body. The US is also barred from funding the UN agency for Palestinian refugees, or UNRWA, under a bill signed by then-President Joe Biden last March.
Why is Elon Musk going after USAID?
Musk’s Department of Government Efficiency, known as DOGE, has launched a sweeping effort empowered by Trump to fire government workers and cut trillions in government spending. USAID is one of his prime targets. Musk alleges USAID funding has been used to launch deadly programs and called it a “criminal organization.”
What is being affected by the USAID freeze?
Sub-Saharan Africa could suffer more than any other region during the aid pause. The US gave the region more than $6.5 billion in humanitarian assistance last year. HIV patients in Africa arriving at clinics funded by an acclaimed US program that helped rein in the global AIDS epidemic of the 1980s found locked doors.
There are also already ramifications in Latin America. In southern Mexico, a busy shelter for migrants has been left without a doctor. A program to provide mental health support for LGBTQ+ youth fleeing Venezuela was disbanded.
In Colombia, Costa Rica, Ecuador, and Guatemala, so-called “Safe Mobility Offices” where migrants can legally apply to enter the US have been shuttered.
The aid community is struggling to get the full picture— how many thousands of programs have shut down, and how many thousands of workers were furloughed and laid off under the freeze?
How much does the US spend on foreign aid?
In all, the US spent about roughly $40 billion in foreign aid in the 2023 fiscal year, according to a report published last month by the nonpartisan Congressional Research Service.
The US is the largest provider of humanitarian assistance globally, although some other countries spend a bigger share of their budget on it. Foreign assistance overall amounts to less than 1 percent of the US budget.
Could Trump dissolve USAID on his own?
Democrats say presidents lack the constitutional authority to eliminate USAID. But it’s not clear what would stop him from trying.
A mini-version of that legal battle played out in Trump’s first term when he tried to cut the budget for foreign operations by a third.
When Congress refused, the Trump administration used freezes and other tactics to cut the flow of funds already appropriated by Congress for foreign programs. The General Accounting Office later ruled that it violated a law known as the Impoundment Control Act.
It’s a law we may be hearing more of.
“Live by executive order, die by executive order,” Musk said on X Saturday in reference to USAID.


Appeals court to hear cases of 2 university students, one detained, the other recently released

Updated 3 sec ago
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Appeals court to hear cases of 2 university students, one detained, the other recently released

Immigration court proceedings for Ozturk and Mahdawi are being conducted separately
The appeals court paused that order last week in order to consider the government’s motion

NEW YORK: A federal appeals court is scheduled to hear arguments Tuesday in the cases of a Turkish Tufts University student who has been detained by immigration authorities for six weeks and a Palestinian student at Columbia University who was recently released from detention.
A three-judge panel of the US 2nd Circurt Court of Appeals, based in New York, is expected to hear motions filed by the US Justice Department regarding Rumeysa Ozturk and Mohsen Mahdawi. The department is appealing decisions made by two federal judges in Vermont. It also wants to consolidate the students’ cases, saying they present similar legal questions.
Immigration court proceedings for Ozturk and Mahdawi are being conducted separately.
A district court judge in Vermont had ordered that Ozturk, a 30-year-old doctoral student, be brought to the state from a Louisiana immigration detention center by May 1 for hearings to determine whether she was illegally detained. Ozturk’s lawyers say her detention violates her constitutional rights, including free speech and due process.
The appeals court paused that order last week in order to consider the government’s motion.
Congress limited federal-court jurisdiction over immigration matters, the Justice Department said. It said an immigration court in Louisiana has jurisdiction over Ozturk’s case.
Immigration officials surrounded Ozturk as she walked along a street in a Boston suburb March 25 and drove her to New Hampshire and Vermont before putting her on a plane to the detention center in Basile, Louisiana.
Ozturk was one of four students who wrote an op-ed in the campus newspaper, The Tufts Daily, last year criticizing the university’s response to student activists demanding that Tufts “acknowledge the Palestinian genocide,” disclose its investments and divest from companies with ties to Israel.
A Department of Homeland Security spokesperson said in March, without providing evidence, that investigations found that Ozturk engaged in activities in support of Hamas, a US-designated terrorist group.
The government is also challenging another judge’s decision to release Mahdawi from detention in Vermont on April 30. Mahdawi led protests at Columbia University against Israel’s war in Gaza. He was arrested by immigration officials during an interview about finalizing his US citizenship.
Mahdawi, 34, has been a legal permanent resident for 10 years. He was in a Vermont state prison since April 14. In his release order, US District Judge Geoffrey Crawford said Mahdawi has raised a “substantial claim that the government arrested him to stifle speech with which it disagrees.”
Mahdawi’s release allows him to travel outside his home state of Vermont and attend graduation next month in New York. He recently completed coursework at Columbia and planned to begin a master’s degree program there in the fall.

PM Carney tells Trump Canada is ‘not for sale’

Updated 48 min 38 sec ago
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PM Carney tells Trump Canada is ‘not for sale’

  • Carney, speaking in front of reporters alongside Trump at the White House, said Canada was ‘not for sale, won’t be ever’

WASHINGTON: Canadian Prime Minister Mark Carney on Tuesday told his US counterpart Donald Trump that Canada was not for sale and would not become the 51st state of the United States.
Carney, speaking in front of reporters alongside Trump at the White House, said Canada was “not for sale, won’t be ever.”


Ukraine’s Zelensky says Russian artillery fire has not subsided

Updated 06 May 2025
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Ukraine’s Zelensky says Russian artillery fire has not subsided

“Therefore, there is no trust in words coming from Moscow,” Zelensky said

KYIV: Ukrainian President Volodymyr Zelensky said on Saturday that, according to his top commander, Russian artillery fire had not subsided despite the Kremlin’s proclamation of an Easter ceasefire.
“As of now, according to the Commander-in-Chief reports, Russian assault operations continue on several frontline sectors, and Russian artillery fire has not subsided,” Zelensky wrote on the social media platform X.
“Therefore, there is no trust in words coming from Moscow.”
He recalled that Russia had last month rejected a US-proposed full 30-day ceasefire and said that if Moscow agreed to “truly engage in a format of full and unconditional silence, Ukraine will act accordingly — mirroring Russia’s actions.”
“If a complete ceasefire truly takes hold, Ukraine proposes extending it beyond the Easter day of April 20,” Zelensky wrote.

Kyiv calls on foreign troops not to take part in Russia’s May 9 parade

Updated 06 May 2025
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Kyiv calls on foreign troops not to take part in Russia’s May 9 parade

  • “The Russian army has committed and continues to commit atrocities in Ukraine,” Kyiv’s foreign ministry said
  • “These people are not liberators of Europe, they are occupiers and war criminals“

KYIV: Ukraine warned Tuesday against any foreign troop participation in Russia’s May 9 parade to mark 80 years since the defeat of Nazi Germany, saying it would be “unacceptable” and seen as helping Moscow “whitewash its war crimes.”
A handful of countries have in recent years sent their militaries to take part in Russia’s traditional May 9 parade — a showpiece event that has become the country’s most important public holiday under President Vladimir Putin’s quarter-century in power.
“The Russian army has committed and continues to commit atrocities in Ukraine on a scale that Europe has not seen since World War II,” Kyiv’s foreign ministry said.
“It is this army that will march on Red Square in Moscow on May 9. These people are not liberators of Europe, they are occupiers and war criminals.”
Kyiv said marching with Russian soldiers would be considered as “sharing responsibility” for Moscow’s actions during its three-year Ukraine invasion.
“To march side by side with them is to share responsibility for the blood of murdered Ukrainian children, civilians and military, not to honor the victory over Nazism.”
Ukraine was one of the most devastated countries during World War II, with Kyiv saying it “touched every Ukrainian family.”
The foreign ministry also said that six million Ukrainians fought in the Red Army — with five million Ukrainian civilians killed and three million Ukrainian troops.
Russian leader Vladimir Putin attributed the victory over Nazism in Europe as a feat primarily achieved by the Russian nation.
Central Asian troops have often taken part in the Moscow parade.
The Kremlin has this year not ruled out that North Korean soldiers could take part for the first time, after Pyongyang’s troops helped Moscow oust Ukrainian soldiers from Russia’s Kursk region.


UN chief: India, Pakistan must ‘step back from the brink’

An Indian Border Security Force (BSF) personnel inspects a vehicle near the India-Pakistan Wagah border post.
Updated 06 May 2025
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UN chief: India, Pakistan must ‘step back from the brink’

  • Countries should exercise ‘maximum restraint’ amid soaring tensions, says Antonio Guterres
  • UN Security Council holds closed-door session to discuss dispute

NEW YORK CITY: UN Secretary-General Antonio Guterres has called on India and Pakistan to exercise “maximum restraint” amid soaring tensions between the two countries.

It follows last month’s terror attack in the Pahalgam area of Jammu and Kashmir.

Both countries administer parts of the territory but claim it in full.

The attack on April 22 killed at least 26 civilians and injured many more.

Guterres, speaking outside the Security Council at UN Headquarters in New York City on Monday, warned that tensions between India and Pakistan “are at their highest in years.”

He added: “I deeply respect and am profoundly grateful to the government and people of both countries — and their significant contributions to the work of the UN, not least UN peacekeeping.

“And so it pains me to see relations reaching a boiling point.”

The Indian government today will carry out a nationwide civil defense drill to simulate an attack on its territory.

Pakistan on Saturday test-fired a ballistic missile with a range of 450 km.

Guterres called on the two countries to “step back from the brink,” and warned that a “military solution is no solution.”

He said: “I understand the raw feelings following the awful terror attack in Pahalgam on April 22. 

“I once again strongly condemn that attack and extend my condolences to the families of the victims.

“Targeting civilians is unacceptable — and those responsible must be brought to justice through credible and lawful means.

“It is also essential — especially at this critical hour — to avoid a military confrontation that could easily spin out of control.

“Now is the time for maximum restraint and stepping back from the brink.

The UN Security Council met on Monday in a closed-door session to discuss the tensions.

Guterres pledged to support “any initiative that promotes de-escalation, diplomacy and a renewed commitment to peace.”